Designing a model for measuring and analyzing the relational capital using factor analysis. Case study, Ansar bank
| Date | 10 October 2016 |
| DOI | https://doi.org/10.1108/JIC-04-2016-0042 |
| Pages | 734-757 |
| Published date | 10 October 2016 |
| Author | Maryam Hosseini,Mohammad Saleh Owlia |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & Finance,Accounting/accountancy,Behavioural accounting |
Designing a model for measuring
and analyzing the relational
capital using factor analysis
Case study, Ansar bank
Maryam Hosseini and Mohammad Saleh Owlia
Yazd University, Yazd, Iran
Abstract
Purpose –The purpose of this paper is to present a model for measuring relational capital in banks by
using measurement indicators defined in previous studies and according to the conditions of the
banking industry and in particular the Ansar bank in Iran.
Design/methodology/approach –The study identifies measurement indicators of relational capital
from the related resources and articles and uses content analysis and factor analysis methods. It also
measures the selected indicators through a questionnaire analyzing them using the SPSS software to
create a model to measure relational capital in the bank.
Findings –By using the measurement model created in this research, relational capital in Ansar bank
is determined to be comprised of eight principal components. The total score of these components is the
starting point of promoting the relational capital in the banking industry.
Research limitations/implications –This study may not have thoroughly covered the peer-
reviewed articles on intellectual capital, but it can be assumed with high confidence that it has made a
serious attempt at studying the most important papers on the subject as of date. Moreover, the model
presented in this study is valid only when applied in comparing banks. It should further be noted that
time limitation, non-availability of relevant experts as well as the required data may have affected the
accuracy and reliability of the results. However, the final model has been utilized to try to optimally
minimize each limitation according to the existing resources, and through their proper management.
Practical implications –This study provides a new approach that can significantly help bank
managers in comparing their banks in the field of relational capital and reacting to their weaknesses
and performance advantages of relational capital over its rivals.
Originality/value –In addition to creating a new framework for relational capital indicators, this
study offers a model for measuring relational capital in the banks.
Keywords Factor analysis, Intellectual capital, Banks, Relational capital
Paper type Research paper
1. Introduction
In addition to the importance of physical and financial assets, Marr (2008) indicates
elements called intellectual capital such as employee skills, good knowledge, good relations
with customers and suppliers, having market and client data and culture of innovation
existing as a key differentiator between successful, mediocre and failing enterprises. Also
above-average returns in the long term are not achieved by physical investing in factories
or offices, but by investing and managing in intellectual capital. IC also allows
organizations to manage their tangible resources and in better way exploit them.
The study carried out by Bramhandkar et al. (2007) illustrated that companies which
grant more attention to the intellectual capital, display better performance, higher
Journal of Intellectual Capital
Vol. 17 No. 4, 2016
pp. 734-757
©Emerald Group Publishing Limited
1469-1930
DOI 10.1108/JIC-04-2016-0042
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1469-1930.htm
The authors gratefully acknowledge the two anonymous reviewers and the editor for their
valuable and helpful comments in the development of this paper. Also, the authors want to give
the special thanks to Afshin Ghaissari for his precise proofreading.
734
JIC
17,4
return on investment and less volatility in stock prices. Stewart (2007) also showed that
the information age and knowledge-based economy is a fundamental revolution,
whereby information is replaced by the working capital and the intellectual property is
replaced by physical assets.
Currently, organizations have two types of asset, namely tangible and intangible .
In traditional accounting systems, intangible assets are not recorded in the financial
statements but have a significant role in determining the market value of companies.
According to a study conducted by Inkinen (2015), knowing the value of intangible
assets in order to measure them appropriately has a significant impact on the
company’s performance and the way of managing the said assets.
Due to the widening gap between the book value and the market value of
organizations, it is necessary that the methods of measurement and analysis of
intellectual capital are extended, and localized for practical use (Marr, 2008), and use
other factors such as the real organization value along with the intellectual value and
the inability of traditional accounting systems to correctly interpret this gap.
Also with the emergence of the new economy, organizations must have a
sustainable competitive advantage to maintain profitability above average, to improve
their position in the market among competitors. According to the resource-based view,
a sustainable competitive advantage can be achieved through the creation and
maintenance of strategic resources in an organization.
Since the 1990s, knowledge has been one of the most strategic resources of
any company, and within the framework of a knowledge-based view, knowledge
assets and intellectual capital are the main drivers in creating competitive advantages
(Sydler et al., 2014).
After the conclusion of the Iran nuclear deal and lifting of sanctions, the emergence
of foreign banks and financial institutions is rapidly gaining pace in the country, and as
result, domestic banks must be managed on an international scale to maintain their
competitive edge and rate of success. Additionally, given the fact that most prestigious
banks in Asia, Europe and America measure and manage their intellectual capital,
measuring the intellectual capital is essential in competing with them.
The purpose of this paper is to present a model for measuring relational capital in
banks by using measurement indicators defined in previous studies and according to
the conditions of the banking industry in Iran.
Since one of the considerations in this study has been to focus more precisely on the
measurement of intellectual capital, the authors have accordingly extended most of our
concentration on the relational capital element as one of the elements responsible for
value creation in the organization. The benefits of measuring the relational capital are
the constitution of awareness with respect to the value of the capital in the market as it
relates to the overall value of the bank, and management planning and organizational
strategies to improve relational capital. The authors have put forth a main research
question and three sub-questions in this paper as outlined below:
RQ1. Why and how to measure relational capital of a bank?
RQ1a. What are the relational capital measurement indicators introduced in
previous studies?
RQ1b. What are the relational capital indicators related to the banking industry?
RQ1c. What is the statistical method for measuring relational capital in the banking
industry in Iran?
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Relational
capital
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